$7,500 CRA Home Renovation Bonus in April – Apply Now!

$7,500 CRA Home Renovation Bonus in April – In April 2024, the Canada Revenue Agency (CRA) launched a new and timely tax credit to help families support aging or disabled loved ones at home. Officially called the Multigenerational Home Renovation Tax Credit (MHRTC)—and often referred to as the $7,500 Home Renovation Bonus—this program helps offset the cost of building a self-contained secondary suite within a primary residence.

Designed with both seniors and caregivers in mind, this initiative supports multigenerational living while offering meaningful financial relief. Here’s everything you need to know about the MHRTC, including who qualifies, what renovations are covered, how to apply, and how to combine it with other programs.

💡 What Is the Multigenerational Home Renovation Tax Credit (MHRTC)?

The MHRTC is a refundable federal tax credit that allows eligible homeowners to claim 15% of up to $50,000 in eligible renovation costs, resulting in a maximum benefit of $7,500.

This means if you spend $50,000 or more on qualifying renovations to create a self-contained unit for a senior or disabled adult, you can get up to $7,500 back when you file your taxes.

Also Read: CPP & OAS Feb 2025: Up to $4,873 Coming – See If You Qualify

👨‍👩‍👧 Who Qualifies?

To be eligible for the MHRTC, you must meet the following criteria:

✅ Homeownership

• You must own the principal residence where the renovations are taking place.
• The home can be a single-family house, semi-detached home, townhouse, or apartment in a duplex.

✅ Recipient of the Suite

• The secondary unit must be intended for use by:
• A senior aged 65 or older, OR
• A disabled adult (who may be younger than 65 but must qualify for the Disability Tax Credit)

✅ Family Relationship

• You must be related to the person who will live in the unit. Acceptable relationships include:
• Parent or grandparent
• Child or grandchild
• Sibling
• Spouse or common-law partner

✅ Residency

• The person receiving the suite must move into the renovated space within six months of completion and live there permanently.

What Renovations Are Eligible?

Eligible expenses must be directly related to creating a self-contained secondary suite. This includes:

• Building a separate entrance
• Installing a bathroom
• Adding a kitchenette or cooking area
• Creating a sleeping area
• Upgrading plumbing, electrical, or HVAC systems specifically for the suite

Not all renovations qualify—only those necessary to make the space fully functional and livable for the intended occupant.

❌ Ineligible Expenses

• General maintenance or cosmetic upgrades (e.g., painting, flooring)
• Furniture or appliances
• Rent or moving costs

How to Claim the Credit: Step-by-Step

Here’s how to claim the MHRTC when filing your taxes:

1. Complete the Renovations: Make sure they’re finished during the tax year you’re claiming.
2. Keep All Receipts and Records: Include invoices, contracts, and proof of payment for all eligible expenses.
3. Get a Statement from the Occupant: Confirm the person using the suite meets age/disability requirements and moved in within six months.
4. Fill Out Form Schedule 12: Available through the CRA website or your tax software.
5. Enter the Total Eligible Amount on Line 45355 of your federal tax return (Form T1).
6. Submit Your Return: The CRA will process your claim and issue any refund owed.

📌 Tip: Always keep copies of all documentation for at least six years in case of an audit.

Real-Life Example: How the MHRTC Helps Families

Scenario:
Sarah wants to build a basement suite so her mother, Margaret (age 72), can move in after retiring from her condo across town.

Renovation Costs:
She spends $48,000 on:

• A separate entrance
• Full bathroom
• Small kitchenette
• Bedroom and living area

Tax Credit Claimed:
15% of $48,000 = $7,200

Thanks to the MHRTC, Sarah receives a refund of $7,200—making it easier to provide care for her mom while keeping housing costs manageable.

Also Read: $1,100 CPP Boost for Seniors in 2025 – Check Eligibility Now

Can I Combine This With Other Credits?

Yes! The MHRTC can often be combined with other government programs, such as:

• Home Accessibility Tax Credit (HATC) – For accessibility-related renovations (e.g., grab bars, walk-in tubs)
• Provincial Tax Credits – Many provinces offer their own renovation credits; check with your local government
• Canada Mortgage and Housing Corporation (CMHC) Grants – For low-income seniors or people with disabilities

Always consult a tax professional or CRA resources to ensure compliance when stacking benefits.

Expert Tips for Making the Most of the MHRTC

• Plan ahead: Ensure renovations align with the credit’s requirements before starting work.
• Work with licensed contractors: They’ll provide proper receipts and follow local building codes.
• Check provincial programs: Some provinces offer matching or complementary incentives.
• Talk to a tax expert: Get advice tailored to your situation, especially if combining multiple credits.